A Decrease in a Person's Real Wage Necessarily Means

question 111

Multiple Choice

A decrease in a person's real wage necessarily means:

• A)lower purchasing power.
• B)a lower nominal wage.
• C)a lower personal disposable income.
• D)a higher nominal wage.
• E)a higher personal disposable income.

---

Definitions:

Intoxicant

A substance that causes excitement or diminished control over faculties, typically by means of alcohol or drugs.

Production Function

An equation representing the relationship between inputs used in production and the output produced from these inputs.

Labor

The physical and mental effort used in the production of goods and services, often considered a primary factor of production.

Machines

Tools or devices designed to perform specific tasks or functions, often powered by electricity or mechanical force.